The Portuguese State spent 251 million less on unemployment benefits

  • ECO News
  • 22 March 2017

Portugal saved 251 million euros on the payment of unemployment benefits in 2016, a 14% decrease comparing to 2015. The State is to be saving more than 7,200 euros a year with each beneficiary.

The Portuguese Government spent 1.5 billion euros in unemployment benefits over the last year, saving 251 million euros comparing to 2015. This 14% decrease represents twice the saving of what the 2016 State Budget predicted. The information was disclosed this Wednesday by the Portuguese newspaper Diário de Notícias, quoting data disclosed by the minister Vieira da Silva in an interview concerning budgetary execution.

The State should be saving more than 7,200 euros a year with the payment of benefits to the unemployed entitled to them, which are becoming less. Between 2015 and 2016, the number of beneficiaries decreased 35,000, from 259.3 thousand in 2015 to 224.6 thousand in 2016. If the analysis period is broadened to 2017, it is possible to see that the downward tendency continues and numbers show that, concerning the overall amount of unemployed in the end of February, 55% did not receive any benefit.

In spite of the 1.467 million euros cushion predicted in this year’s State Budget and allocated for the payment of unemployment benefits (a 3% reduction compared to 2016), the Government has been taking measures to avoid prolonging unemployment situations. Long duration beneficiaries are, obviously, more costly to Social Security, which justifies the recently-presented programme Qualifica (a programme which aims to expand adult education in order to have more skilled individuals and to improve employability).